We all know how the modern app UBER changed the world and made it a better place. In the same way, FSCO is modernizing the auto insurance system and developing a permanent solution for emerging transportation services. According to the policy, UBER drivers will be eligible for a coverage that includes the statutory accident benefits, uninsured motorist coverage as well as third-party liability that sums up to $1 million while UBER is in use with no ride accepted and $2 million after a ride has been accepted.
If you are an UBER driver in Toronto, Ontario, you should know that there is a new policy approved from Intact Financial Corp. for every private vehicle that is used to transport people through the UBER.
The Insurance Gap Present In This Scenario
The bottom line is that every individual policyholder should expect a different auto insurance rate now in Toronto, coming from the change that FSCO has put to practice. But how does this affect UBER drivers and their private vehicles?
As the CEO of FSCO Brian Mills recently wrote, “Going forward, I want to emphasize that the sharing economy in general, and the automobile insurance implications in particular, will continue to evolve and will require innovative solutions and responses by all stakeholders, including FSCO, that respond to technological advances. At the same time, I want to emphasize that approved solutions may also need to evolve and adapt as circumstances and legal requirements change. Therefore, any policy form or endorsement that I approve is also subject to ongoing review”
The new auto insurance policy covers all Uber drivers, passengers and vehicle owners only when Uber is in use – but not when the app is off and the drivers use their vehicles for personal purposes
There are a several factors that actually contribute to this change, according to FSCO’s last quarterly report. Some of them may include the vehicle, the driver’s living place, his driving and insurance history as well as his coverage options.